Question

In one year, you will make an initial deposit in the amount of $2,000 in a...

In one year, you will make an initial deposit in the amount of $2,000 in a new savings account. You plan to make additional deposits in the same amount of $2,000 for 17 years after the initial deposit. There will only be these 18 deposits and no withdrawals made to your account. Assume the interest rate you will earn is 4% per year. How much will your account be worth in 18 years?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
One year from now, you deposit $500 in a savings account. You deposit $1,800 the next...
One year from now, you deposit $500 in a savings account. You deposit $1,800 the next year. Then you wait two more years (t=4) and deposit $1,000. If your account earns 6% interest per year, compounded annually, and you make no further deposits or withdrawals, how much will be in the account 11 years from now?
A) You plan to deposit $2,000 per year for 6 years into a money market account...
A) You plan to deposit $2,000 per year for 6 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today. What amount will be in your account at the end of 6 years? Round your answer to the nearest cent. Do not round intermediate calculations. $ Assume that your deposits will begin today. What amount will be in your account after 6 years? Round your answer to...
A year from now, you plan to begin saving for your retirement by making a deposit...
A year from now, you plan to begin saving for your retirement by making a deposit into a new savings account that has an expected return of 7.5% compounded monthly. You plan to continue depositing the same amount each year until you retire in 30 years. You expect to make withdrawals in the amount of $200 from your savings account every week for 45 years after you retire. Assume you were asked to find the amount you will need to...
You would like to have $47,000in 9 years. To accumulate this amount you plan to deposit...
You would like to have $47,000in 9 years. To accumulate this amount you plan to deposit each year an equal sum in the bank, which will earn 8 percent interest compounded annually. Your first payment will be made at the end of the year. a. How much must you deposit annually to accumulate $47,000 in 9 years? b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should this lump-sum deposit be?...
A) Assume that, starting next year, you make annual deposits of $ 950 into a savings...
A) Assume that, starting next year, you make annual deposits of $ 950 into a savings account that pays 6% interest. How much will you have in your account after 11 years? B) You made an investment over the past year, and your nominal return was 7.3%. Over the same year, the rate of inflation was 3.9%. What was the real rate of return for this investment? C) Assume that, starting next year, you will make deposits of $572 each...
Eight months from today you plan to deposit $20,000 into an account with an APR of...
Eight months from today you plan to deposit $20,000 into an account with an APR of 5.5% per year with quarterly compounding. In addition, eleven months from today, you plan to make the first of a series of semiannual deposits into the same account. Your first deposit will equal $4000 and subsequent deposits will grow by 0.5% each. You will make your final deposit five years and five months from today. How much will be in your account six years...
You wish to save money to provide for retirement. Beginning one year from now, you will...
You wish to save money to provide for retirement. Beginning one year from now, you will begin depositing a annual fixed amount into a retirement savings account that will earn 8% annually. You will make 30 such deposits. Then, one year after making the final deposit, you will withdraw $100,000 annually for 20 years (no more deposits). You wish to have $50,000 left in the account after the 20-year retirement period ends (note that this final cash flow has the...
You are interested in saving money for your first house.  Your plan is to make regular deposits...
You are interested in saving money for your first house.  Your plan is to make regular deposits into a brokerage account which will earn 14 percent. Your first deposit of $5,000 will be made today.  You also plan to make four additional deposits at the beginning of each of the next four years.  Your plan is to increase your deposits by 10 percent a year.  (That is, you plan to deposit $5,500 at t = 1, and $6,050 at t = 2, etc.)  How much...
You need to accumulate $10,000. To do so, you plan to make deposits of $2,000 per...
You need to accumulate $10,000. To do so, you plan to make deposits of $2,000 per year - with the first payment being made a year from today - into a bank account that pays 8.66% annual interest. Your last deposit will be less than $2,000 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal? Round your answer up to the nearest whole number. How Large will the...
You want to make a one-time deposit into a bank account today and have $2,000 in...
You want to make a one-time deposit into a bank account today and have $2,000 in the account in five years. Which interest rate requires you to deposit the least amount of money into the account today? Show your work. a.) 1% b.) 8% c.) 5% d.) 4%
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT